Solved: €32 Spent, €14 Earned – Normal Google Ads Start?

Hi there,

Thanks for getting in touch. Happy to give you some of my initial thoughts and guidance on your campaign. First off, don't be too discouraged by the numbers. Spending €32 to get one sale might feel like a failure, but what you've actually done is bought your first bit of data, and that's the most valuable thing you can have when you're starting out. Alot of campaigns I've worked on, especially for new software, start out looking like this, or even worse. The trick is knowing what to do with that data.

From what you've described, it sounds like you're in a classic early-stage situation. You've got a product, you've got some traffic, but the numbers aren't making sense yet. Let's break down where the problems likely are.

We'll need to look at your campaign's foundation...

Okay, let's start with the Google Ads campaign itself. Your CPC of €0.20 is really, really low. While that might seem like a good thing, it's often a bit of a red flag. It usually tells me one of two things: either you're targeting very low-competition (and often low-value) keywords, or your quality score is poor which means Google is showing your ads in less desireable positions. My guess is it's probably the keywords.

For a new web app, it's so easy to fall into the trap of using broad keywords. If your app helps with, say, social media scheduling, and you're just bidding on "social media tool", you're going to get clicks from a huge range of people. Students doing research, marketing managers at massive corporations looking for enterprise solutions, people who just want a free tool. Most of them will never buy your specific app. You end up paying for alot of clicks that have zero chance of converting.

You need to get way more specific. Think about the exact problem your app solves. Who is your perfect customer? What specific phrase would they type into Google when they're frustrated and looking for a solution like yours? This is where long-tail keywords come in. Something like "affordable scheduler for instagram carousels" is going to get far fewer impressions, but the person searching for it is almost perfectly qualified. Your CPC will probably go up, maybe to €0.80 or €1.50, but your conversion rate should improve dramatically, which is what actually lowers your cost per sale.

Then there's your ad copy. With 162 clicks from 7.2k impressions, your click-through rate (CTR) is about 2.25%. That's not terrible, but it's not great either. Your ad needs to do more than just say what your app is. It needs to grab them by the collar and tell them why they need it right now. What's the main benifit? Does it save them time? Make them more money? Reduce a major headache? You need to test different headlines and descriptions that focus on those outcomes, not just the features.

I'd say you need to seriously review your website and offer...

Tbh, this is probably the biggest piece of the puzzle. You got 162 people interested enough to click your ad and visit your site. But only one of them bought anything. That's a conversion rate of about 0.6%. That's where your money is disappearing. You could have the best ad campaign in the world, but if your landing page doesn't convert, you're just pouring water into a leaky bucket.

I've run quite a few campaigns for B2B SaaS and this is a common theme. The offer is often the main issue. Are you asking people to pay for your app straight away? Without a free trial or a demo? That's a massive ask for a new, unknown piece of software. It's a huge effort for someone to switch to a new tool, let alone pay for it sight-unseen. Your competition is almost certainly offering free trials, discounts, or some kind of freemium model. You need to compete on that level. A completely free trial is usually the best way to get people in the door. Let them use it, see the value for themselves, and then ask for the sale.

I remember working with a software client where we reduced their cost per user acquisition from £100 to £7 by split testing their ads on Meta and Google Ads. A key aspect of this was optimising their offer and the structure of their landing page.

Your landing page copy is also absolutly vital. It needs to be incredibly persuasive. You're a developer, so you probably think in terms of features. Your customers think in terms of benifits. You need to translate your features into their desired outcomes. It's not about "API integration", it's about "Effortlessly connect all your tools in minutes". Getting a professional copywriter can make a world of difference here.

You probably should think about your long-term strategy...

A single Google Ads campaign is just one part of a bigger picture. You've got to think about the entire customer journey. What happens to the 161 people who clicked but didn't buy? Right now, they're just gone. That's a huge waste.

This is where retargeting comes in. You should be setting up tracking pixels (like the Meta pixel and Google's tag) to build audiences of everyone who visits your site. Then you can run cheap ad campaigns on platforms like Facebook, Instagram, and across Google's display network to stay in front of them. Maybe they weren't ready to buy on that first visit. Maybe they got distracted. A simple retargeting ad showing them a testimonial or reminding them of the main benefit can be incredibly effective at bringing them back to convert later.

You also need to think about Customer Lifetime Value (LTV). Is your €14 sale a one-time thing, or is it a monthly subscription? If it's a subscription, a €32 cost to acquire that customer might actually be profitable in the long run. If each customer stays for an average of 6 months, their LTV is €84. Suddenly, paying €32 to get €84 doesn't sound so bad, does it? You need to understand this number to know how much you can truly afford to spend on ads.

Once you have Google Search working profitably, you can think about other platforms. We've seen great results for software using Meta Ads, for example, driving thousands of trials for B2B SaaS clients. For example, we acquired 4,622 registrations at $2.38 cost per registration for a B2B software using Meta Ads. This works well for reaching people who aren't actively searching for a solution but fit the profile of your ideal customer. But get one channel right first before you spread yourself too thin.

You'll need a clear plan for what's next...

Right, so there's a lot to take in there. It's not about just flicking a switch. It's a process of continuous testing and optimisation. Based on my experience, focusing your limited time and money on the highest-impact areas first is what matters.

I've detailed my main recommendations for you below:

As a developer, your expertise is in building a great product. Trying to also become an expert in the complexities of paid advertising is a huge undertaking. It involves constant analysis, testing, and strategic adjustments that take a lot of time and experience to get right. By focusing on these steps, you're putting your efforts where they'll have the biggest impact, but it can still be a difficult path to walk alone.

If you'd like to go over this in more detail and have us take a look at your account and website together, we offer a free, no-obligation initial consultation. It could be a good way for you to get a really clear, actionable plan tailored to your specific app.

Regards,
Team @ Lukas Holschuh